The 'AAA' rating on Washington State Housing Finance Commission's revenue bonds reflects: Pledged assets consisting of 'AAA/A-1+' rated investments; GNMA construction loan certificates (CLCs) during the project construction period; and, a GNMA permanent loan certificate (PLC) to be delivered upon project completion and final endorsement of the underlying mortgage for FHA insurance; Coverage of all credit shortfalls and liquidity shortfalls -- negative arbitrage, the 30-day payment lag, reinvestment risk, and payment of GNMA accrued interest -- from bankruptcy-proof funds on deposit with the trustee; and Cash flows demonstrating sufficient investment earnings and mortgage revenues passed-through under the GNMA security to make all scheduled debt service payments and pay all required fees and expenses. GNMA-guaranteed mortgage-backed securities (CLCs and PLCs) are
